Category Archives: Finance
Most of us know when we hit a financial disaster, usually we can even trace the beginning of the process that led to the financial failure, but the problem seems to be the fact that some people keep repeating the mistakes, or adapting new problematic methods of trying and solving problems.
The wise financial planner would first consider his own strong and weak points before making financial decisions and would draw conclusions for the experiences he had in the past, the few points that ultimately lead to financial disasters that I will discuss here are very basic and natural, yet many people do not practice the least amount of caution when making plans.
The first and most prominent problem with bad financial planning is that the planner has no financial education, in this case I would strongly advise seeking professional help. Most of do not have formal financial education, and many of us do not understand the financial basics that rule the markets, other do not want to go into these calculations, but all these groups should start by admitting that they do not have the knowledge of dealing with financial planning and look for someone who does. The great benefit of listening to advise of experts is that it teaches you things, the approach to financial planning, the basics of a new financial plan and much more, it is very possible that in a few months you will be much more educated and better informed in a way that will allow you to start making your own calls.
The second problem is making decisions and planes letting other people manage you finance for you, and I don’t mean letting you professional financial planner but friends, neighbors and family. Even though these people have the best intentions, it is very clearly your own responsibility to take care of your personal finance, and as much as it is unpleasant to make financial plans and take care of your personal finance it is a fact of life you must practice.
The third, and last mistake we are going to discuss is choosing the wrong kind of financial advisor, some people are tempted to let the wrong kind of people manage their finance situation, this includes insurance experts, tax experts and other financial experts of all sorts. It is important that you find a person that you have good communication with , that understands you and what financial help you are seeking, and that this expert be an expert on the issues you need help the most, do not let personal relationships, family connections and business relation dictate the financial expert you use, it is of extreme importance that this person is as close to being perfect for you as possible. The best thing to do is to look for a person that works in a financial office and makes his money by advising and managing personal financial accounts, someone that has been around for long and that will have the experience to guide you through the processes.
The older generation were raised to not talk about money with other people. They think it a very personal subject. Although it might be hard to talk about money with your parents, how will you handle your aging parent’s finances without having a conversations with them, about their financial goals.
It’s best to start financial conversations early with your parents. Discussing your parent’s financial situation can feel awkward. Estate planning conversations can be upsetting for you and your parent. It’s hard to consider a time when your parent may not be making his own decisions. Expect to have many conversations to build comfort and get the facts you need. Consider opening the conversation with an example from the media or someone you know who has had financial issues. When talking about the difficulties that others have faced ask how your parents would do it in a different way.
Even if your parent will not discuss financial details, you can encourage him to organize his information so that you or someone else can step in to handle your aging parent’s finances during an emergency. Tools like financial power of attorney and living trusts should be put into place before they are needed.
Respect your parent’s money style. Keep in mind that strategies and investments that are right for you may not be right for your parents. By talking with and observing your parent you should develop a clear understanding of your parents’ financial goals and needs.
When you are faced with significant changes to your parent’s long term care, you may wish to enlist the help of their financial advisor to revamp their portfolio to better meet your parent’s current needs. It can be helpful to create different scenarios about how long your parents’ funds will hold out at current and projected levels of care.
An important part of handling your parents’ finances is Medicaid planning. If it looks like your parents’ money will be used up via long term expenses, hire a Medicaid planning lawyer to help ease the transition to Medicaid.
When you begin to handle your aging parents’ finances, regular check ins and reporting to your parent and with your parents’ permission to your siblings are a good idea. You may find that using a personal accounting tool like Quicken is helpful so you can easily track income and expenditures and create reports for your family.
Other steps you can take to streamline the daily chores of handling your aging parents’ finances:
Create a chart or list of all the usual deposits and monthly bills can be really helpful. This can help you discover if anything is missing.
Create a complete list of your parent’s assets. Include other important financial tools like life insurance and long term care insurance policies.
Keep copies of your parent’s living trust and financial power of attorney in your files along with the supporting documentation when you begin to serve as successor trust or your parent’s agent so you can provide copies to financial institutions.
Receive and pay bills online. Set up automatic payment of recurring bills like utilities and insurance payments from your parent’s bank account. Consolidate accounts when appropriate. Over time your parent may have set up accounts at various banks and brokerage companies. This may be a good time to simply the number and type of accounts.
Ancient yogis to modern philosophers have said that we can only attain true happiness by giving to others without expecting anything back. If you cannot be of service to someone else with your time or your skills, you can always help someone out if you donate to charity in Australia. In the spirit of paying it forward, if you have more money than you need to cover all your basic costs, why not set some aside to make life easier (and sometimes – make life possible) for someone who isn’t in the position where they can earn a salary. By unconditionally donating to a charity, you will definitely influence someone’s life for the better, regardless of the fact that you might never get to meet that person.
Australians are a very giving nation. Recent polls show that over 4.6 million Australians donated some money to charitable organizations in the last year, where 67% of businesses supported a non-profit organization (NPO) of their choice financially. Donating is simple: you choose a charity or NPO, make the donation and receive the receipt. The receipt is important, as charity donations in Australia are tax deductible. Donors should just check that the organization they are giving to is, in fact, a Deductible Gift Recipient. For more information about tax deductibility of donations, including the criteria of a charity tax deduction and what amount qualifies as a tax deductible donation, you can look at the official website for the Australian Tax Organization.
The most difficult part when deciding to donate to charity in Australia is choosing where your money should go. The most popular field for charities is for helping children in need. Whether it is children who have suffered abuse, children who are in need of an education or children who are orphaned, there are lists upon lists of charities to choose from. Children are innocent and defenceless, and by enabling charities to enable them, you can give them a better life. Other charities like animal/bird charities are also popular, as well as charities helping with community services or helping people with disabilities. Many private Universities are dependent on donations from individuals or organizations, and often times the alma mater of a tertiary institute will show their loyalty by giving yearly donations.
If you find yourself in a favourable financial situation and you are driven by the desire to help someone, start doing your research. Find a charity that speaks to you, that supports something you feel passionate about and delve into their mission. For charities and NPOs, every donation helps, regardless of how small or big it is.
A Chief Financial Officer (CFO) is responsible for planning, controlling, implementing, and managing all aspects of financial activities in the company. For people who are carving out a career in finance, becoming a CFO may well be the ultimate top of the world job. Yet, its certainly not easy to get there, especially in this ultra-competitive world. Lets take a look at how you can become a CFO.
Before embarking on your journey to become a CFO, its essential to understand the duties, responsibilities, and challenges of such a position. In a company, the CFO is the head of the finance department so its a highly demanding job. The CFO is an integral part of the executive committee, reporting to the President or CEO of the company. Traditionally, the consummate CFO is someone who is innovative, an expert number cruncher, and proficient in tax planning. Due to the changes in corporate culture and the way corporate roles have evolved, the modern CFO is expected to wear other hats as well.
The modern CFO is expected to be a complete leader. The person is expected to understand all aspects of business operations in regards to product management, sales, marketing, and manufacturing. In this way, the CFO can implement more efficient solutions and control the company’s finances in the most effective way. The CFO has to understand the company’s scope of business and its position in the industry. Rather than occupying the back-office, the modern CFO is the CEOs strategic partner, playing a leading role in the company’s strategic planning and operations. Its also essential for a modern CFO to possess skills in inspirational leadership, team work, people management, collaboration, and negotiation.
For the CFO, there are plenty of career options. Other than the private sector, CFO’s are also in high demand in the public sector. Due to the size and reach of many government agencies, there’s always a need for competent CFO’s in federal as well as state governments. Furthermore, CFO’s can also work in various industries like health care, entertainment, manufacturing, finance, education, information technology, and so on. As companies around the world continue to grow, the need for CFO’s will only increase.
Generally, the basic educational requirement for a CFO is a bachelors degree in accounting, finance, business administration or economics. Its also quite common for bigger companies to request for CPA and/or MBA. Depending on the industry or company, there are also instances where professionals with job-specific degrees are promoted to the position of CFO in public or healthcare sectors. To handle the tasks and duties of a CFO, they will be required to undergo additional training. In terms of work experience, its normal for a company to set a minimum of 10 years experience in a financial leadership position in related industries.
CFO’s are very well compensated. In the United States, the salary for CFO’s can range from $60,000 to $200,000. The bonus for CFO’s ranges from $3,000 to $79,000 and profit sharing ranges from $2,300 to $49,000. Looking at these figures, its easy to see why so many people aim to become a CFO.
Many types of financial intermediaries coexist in our current economy. Though different, financial intermediaries have all one function in common. That is, they purchase financial claims with one set of characteristics from borrowers and sell financial claims with different characteristics to the lenders and engage in best forex trading markets. This is what it means to be a go-between i.e. in an intermediary.
For examples the major financial intermediaries in our economy and their growth rates between 1980 and the year 2000 had a growth rate of 9.6%. This rate of growth was faster than the economy as a whole which only grew at about 6%. The largest financial intermediaries in the US economy are commercial banks but the fastest-growing intermediaries or mutual funds and money market funds. The rapid growth rate of financial intermediaries reflect the growth in indirect securities issued, the increase in the proportion of funds being channeled through the intermediation market and the tremendous wealth created by the US economy during the decade before the millennium.
Financial intermediaries are classified as deposit type institutions, contracts will savings institutions, investment funds, or other types of intermediaries that are specialized in nature. These financial intermediaries meet different needs for different borrowers and lenders and provide forex trading tips. Could you imagine the implications for investment in physical assets such as oil refineries or long-distance telephone companies if financial intermediaries were not available to lend money over long periods of time such as 100 years. Financial intermediaries makes these kinds of loans possible for large corporate borrowers as well as providing interest-bearing securities for lenders who are risk adverse.
As with all things that work in theory they often do not work in practice. Whether or not this is the case for financial intermediaries is arguable. But one point that can be agreed upon is that when there is selective enforcement of financial regulations as well as corruption and corporate malfeasance such a system is bound to fail when villainy reigns supreme.
Cash flow is the interior and exterior of your business and is the lifeline for all businesses. Income could be referred to as cycle: your company uses cash to get assets which are then used to create products or services. They are then offered to get some funds and so the cycle is repeated. But what’s most important is that you positively manage and control these cash inflows and outflows.
Sometimes, when individuals are battling for capital to help keep businesses running, they get eccentric assets for financial help. Many banking institutions don’t really extend cash rather offer assistance and counseling that increase the cost of caring the client.
Cash advances and unsecured loans really are a better option to get your business quick money in crunch financial situations. The micro-banking companies offer several kinds of loans and cash advances to businesses for all needed reasons. Financing might be granted as secured or unsecured. In secured loan, collateral is provided to assist guarantee payment in case of default. In unsecured loan, no collateral is provided except just the borrower signature being a legal promise to pay back the loan amount as contracted.
Unsecured business loans and cash advances come in good belief that the borrower will repay the loan amount as contracted. Such cash advances can be for a lot of productive reasons including purchasing equipment and appliances, renovation, paying for bills or financing that dream franchise.
The opportunity to pay back the current and proposed obligations is crucial while approving financing. Cash advance loans are usually declined to those who’ve a present past due advance. Generally cash advance schemes the borrower’s ability to pay back is dependent upon the borrower’s monthly credit card sales receipts.
There are many benefits of business cash advance lending. The cash advance lenders are very flexible while approving this type of business loan. Even if your business has a low credit score, you can still get cash advance financing. Also the process of getting a business cash advance is instant. The loan application process is very simple, you just have to fill an online application form and the money will be transferred to you in just few business days. The cash advance can also be used for any business purpose without any restrictions. This way you can distribute the cash any where you deems fit.
Financial planning can be the most rewarding and at the same time one of the most challenging tasks. Economic instability has made it quintessential to come with sufficient investment since it helps to protect oneself of future uncertainty.
Accountants in UK help a lot when providing financial advice comes under concern. Financial advisor, also referred to as financial planner is actually a professional who comes from finance background and helps with financial planning service to business, individuals and even government in lieu of a commission or a professional fee. Professional service here can be in the form of investment advice that range from retirement planning to insurance advice. It also includes insurance advice in an attempt to provide financial protection that helps to cope with different types of emergency and need of huge sums of money. Financial advisors also help clients to build portfolio of investment. Investments that are in line with financial portfolio are anticipated to balance investment income and capital gains apart from acceptable level of risk through allocation of money.
There are many who wonder if they are really in need of freelance accountant in London or a financial advisor in the very first place. The answer to this question is somewhat subjective in nature. However, it is vital to understand that effective portfolio development or diversification of financial proceedings need higher degree of knowledge and constant research. Another important question that comes in here is ways to select experienced accountants in UK. Below are some of the issues that need to be clarified before a financial advisor is joined hands with:
Question about experience: Ask in detail about the term the person concerned has practiced as an advisor as well as type of firms that he or she has dealt with. Allow the accountant to describe experience in detail. Other than corporate experience, counselling experience is also vital here. Enquire about qualification: Ask questions that can help with establishing credentials of the advisor since there are personnel who come with neither experience nor qualification. It is imperative to analyze whether the concerned professional is keeping himself or herself updated.
Ask about services offered: Services offered by financial advisors must correspond to license, expertise and credentials. Selling securities or insurance products like mutual fund and stocks may need license or registration with the State or federal authority.
Ask about the approach followed: The financial advisors follow a unique approach when financial planning comes under concern. The approach must be understood and the professional chosen only if the approach appears comfortable. For example, a single plan can be developed that aims to cater to varied financial goals or a separate plan can also be chalked out that helps to reach each goal. The approach here must not be too conservative or aggressive.
Clarify terms of payment: The advisors are paid through commission, fixed salary or fees that are based upon working hours or come with a fixed slab. Regardless of type, things must be clearly specified and adhered to. Last but not the least, check out whether the concerned advisor faced any disciplinary action in career. Research properly and ask for opinion from colleagues and fellow entrepreneurs to get in touch with best accountant in UK.
Now is a good time for getting your financial house in order. The market, according to some, is starting to rebound. Even if it isn’t, the events of the last 18 months should have taught most of us a lesson: save more, as well as use credit less. Many people could benefit from sound financial advice. The very first thing you’ll need to do is find the best financial advice you can.
While getting help trying to unravel complicated financial choices you need to remember that ultimately the decisions you make must be your own. Only you can make the best choices for your overall, long-term financial health. Any advice you receive needs to be taken as just that: advice. Not gospel or truth, just someone’s opinion that you can think about. Before deciding on an advisor here are some things you can keep in mind. The following tips will help you pick the right advisor and, hopefully, avoid falling into the trap of trusting someone who is not qualified to give you financial advice.
1. What qualifications does the advisor have? Many times an advisor will be what is known as a ‘tied agent’. That implies that they can only sell the products and services of one company. That does not mean they can’t assist you but if they are tied to just one company they are going to be limited in the products they suggest to you and they will obviously not offer you unbiased information.
They are duty bound to show you which of their products are best for you, they don’t necessarily need to tell you that none of the products their company provides is an effective fit for you and your possible goals and that XYZ Company actually has something that will work better for you.
2. How does the financial planner make their money? It’s almost always in the form of a commission or fees. That means if they don’t sell you something, they don’t make any money. You should definitely know what the total fees and commissions will come to. Sometimes they may receive multiple fees for various transactions, which could really add up…for you.
3. Fiduciary. This strange sounding word is very important to your financial health. A planner who accepts fiduciary responsibility means they are obligated under the law to act in your best interests. Anyone who doesn’t accept this responsibility is just saying that they will attempt to act in a way that doesn’t harm you.
4. Will the financial planner help you with every aspect of your financial plan? That will entail everything from having adequate insurance coverage, to investment choices and estate planning. There are many elements to your financial health and a good quality advisor should be able to help with all of them as well as provide you with a comprehensive plan.
When looking for the best financial advice it’s important to keep the above list in mind. The whole process can appear overwhelming and while it’s important to enlist the help of a professional it’s even more important to always remember it’s your money and your future. You should be an attentive co-pilot on this little journey!
Your future could depend on you getting Good Financial Advice, and than putting that advice into action. If you?re reading this online maybe you need a little help on how to earn some extra money to kick start your early retirement? Why not check out my Free Internet Marketing Library right now?
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One of the most important parts of a professional business plan is financial projection, which is the eighth section of business plan. Whether you are seeking for funds or starting your business, it is necessary to make a financial projection, which attracts the investors and help you to take important decisions easily.
These professional business plans are custom business plan, which are easily available online. Custom business plan writing is not an easy task. One requires enough time, money and effort to write a successful business plan that will lead their business towards success.
Financial projection usually consists of three sections: Income statement, balance sheet and cash flow statement. It is necessary to gather all the financial data, in order to prepare financial projection. Avoid adding unnecessary or irrelevant material, while drafting your financial projection. If you add irrelevant or unnecessary material in financial projection than you will not be able to meet your financial goals in immediate future.
Below are the mistakes that a business plan writer make while writing crafting financial projection:
* Add unrealistic sales and profit assumptions, which are the most important parts areas of financial plan.
* Add too much irrelevant material. It is necessary that financial projection is to the point. It is one of the most important sections that investors look before granting the loan. If it contains irrelevant material, the chances of funds will be lessen.
* Industry average: Most business plan writers fail to compare their financial projections with industry average. Industry average is important to know the performance of your company, whether it is above or below.
* Most business plan writers fail to link financial statements. This is because these financial statements are prepared separately, so most of the time it will not create the balancing effect in balance sheet. For getting the accurate result, it is necessary to check the financial statements time-to-time.
Above are some mistakes that a business plan writer made, while crafting financial projection. If you are unable to create financial projection without any errors, you can hire professional business plan writer or buy business plan from business plan service providers, which are easily available online.